Electric Two-Wheeler Market Size, CAGR & Forecast, 2025-2035

Electric Two-Wheeler Revenue Doubles by 2035 as Growth Shifts from China to India, Southeast Asia and Africa

Worldwide, buyers spent USD 28.46 Billion on new electric two-wheelers in 2025, and the electric two-wheeler market is set to reach USD 30.69 Billion in 2026 and USD 60.59 Billion by 2035, growing at a 7.85% CAGR.

Radial Insights sizes the electric two-wheeler market as the ex-factory value of new battery-powered scooters, mopeds, motorcycles and throttle-operated electric bicycles, including the battery when it is sold with the vehicle. We exclude pedal-assist-only bicycles (pedelecs), kick scooters, electric three-wheelers, used vehicles, and stand-alone battery swapping or charging fees.

China is still the largest market by far. The country's new electric bicycle safety standard, GB 17761-2024, took effect on September 1, 2025, and pushed buyers toward newer, safer models, which helped Yadea lift 2025 revenue 31% to RMB 37.01 billion. Growth outside China is faster. India registered about 1.4 million electric two-wheelers in FY2026, up about 22%, and Vietnam has set out plans to restrict petrol motorbikes in central Hanoi.

The fastest-growing segment is sodium-ion battery models at a 24.50% CAGR, from a small base, as Chinese makers launch lower-cost packs. By vehicle type, electric motorcycles grow fastest at 12.85%, as higher-power models reach commuters who now ride 110cc to 150cc petrol bikes.

The fastest-growing region is Africa at a 14.35% CAGR, driven by battery-swap fleets for motorcycle taxis in Kenya, Uganda and Rwanda. Asia Pacific (APAC) keeps more than four fifths of global revenue through 2035.

Higher-Power Motorcycles, New Battery Chemistries and Fleet Buyers Grow Faster Than the Entry Scooter Core

The electric two-wheeler market is moving up the power range and away from lead-acid batteries. Entry scooters and throttle bicycles still make up most units, but the segments that replace petrol motorcycles and serve delivery fleets carry the faster growth rates.

Electric Motorcycles Grow Fastest by Vehicle Type at 12.85%

Electric scooters and mopeds are the largest vehicle type, led by the TVS iQube, Bajaj Chetak and Ather Rizta in India and Yadea and Aima models in China, and they grow at 7.40%. Throttle electric bicycles, the core of China's market, grow at 6.60% as the 2025 safety standard caps speed and weight. Electric motorcycles grow fastest at 12.85%, as Spiro, Ola Electric, Zero Motorcycles and Chinese makers offer models that match 125cc petrol bikes for daily commuting and taxi work.

Sodium-ion Packs Lead Battery Growth at 24.50%

Lithium-ion is the main chemistry and grows at 10.20% as it replaces sealed lead-acid in China and Southeast Asia. Lead-acid grows at just 1.85%, kept alive by low prices in rural China and India. Sodium-ion is the fastest-growing segment at 24.50%. Yadea launched sodium-ion models in China in 2025, and sodium cells avoid lithium price swings and perform better in cold weather, which suits low-cost scooters.

Models Above 4 kW Expand at 13.40%

Vehicles below 1.5 kW, mostly throttle bicycles and low-speed scooters, grow at 6.10%. The 1.5 kW to 4 kW band, which covers most Indian and Vietnamese scooters, grows at 9.35%. Models above 4 kW grow at 13.40%, because riders replacing petrol motorcycles want highway speed and load capacity.

Fleet Buyers Grow at 10.90%

Personal mobility accounts for most demand and grows at 7.20%. Delivery and commercial fleets grow faster at 10.90%. Food and parcel delivery platforms in India, China and Southeast Asia, and motorcycle taxi riders in Africa, run their bikes for long hours each day, so lower running costs pay back quickly. Battery swapping networks from Gogoro, Spiro and Indian operators make fleet adoption easier.

Market Trends

China Resets the Market with a Stricter Safety Standard

China's revised electric bicycle safety standard, GB 17761-2024, took effect on September 1, 2025. It tightens rules on speed, fire resistance, battery safety and tamper-proofing, and bars older designs from sale. Leading makers with compliant product lines gained share, and Yadea reported 2025 revenue of RMB 37.01 billion, up 31%, with profit up 129%. The standard favors large brands with strong engineering and pushes smaller assemblers out of the market.

India Shifts from Start-Ups to Established Makers

India registered about 1.4 million electric two-wheelers in FY2026, up about 22%, and passed 1 million registrations in the first half of FY2027 as September 2026 volumes jumped 85%. TVS Motor Company and Bajaj Auto now lead monthly sales, while Ola Electric's share fell to about 6.6% in September 2026. Ather Energy listed on Indian stock exchanges in May 2025, and Honda and Hero MotoCorp have added electric scooters. Buyers now favor brands with large service networks.

Subsidy Timelines Shape Demand Spikes

India's PM E-DRIVE program was extended in August 2025 to March 2028, with electric two-wheeler incentives originally set to end in FY2026. In March 2026 the government extended those incentives again, first to July 2026, and in August 2026 it extended them further with a larger total outlay. Each deadline triggers pre-buying, which makes monthly sales volatile but supports annual growth.

Cities Restrict Petrol Motorbikes

In July 2025, Vietnam's government directed Hanoi to ban petrol motorbikes inside its innermost Ring Road 1 from July 2026, and VinFast reported a sharp jump in electric scooter sales in the following quarter and record 2025 sales. Hanoi later moved to a phased low-emission zone. Similar urban rules in Chinese and Indian cities, and tighter emissions norms for petrol bikes, steer commuters toward electric models.

Restraints and Challenges

Dependence on Subsidies in Price-Sensitive Markets

In India, upfront incentives under the PM E-DRIVE program run by the Ministry of Heavy Industries have repeatedly been set to expire and then extended. When incentives shrink, prices rise and sales dip, as Indian buyers compare electric scooters directly with petrol models that cost less upfront. A full end to incentives before battery costs fall further would slow growth in the second-largest market.

Battery Fire Safety and Quality Concerns

Battery fires in electric scooters in India and China have hurt buyer confidence and led regulators to tighten rules. China's GB 17761-2024 standard and India's revised battery testing norms add certification cost. Smaller makers without in-house battery engineering struggle to comply, and recalls can damage brand reputation for years.

Weak Demand in Europe and North America

In Europe, motorcycle and moped registrations reported by ACEM show electric models remain a small share of new two-wheelers. High vehicle prices, the end of several national purchase bonuses and a riding culture centered on larger motorcycles limit electric uptake. In North America, electric motorcycles remain a niche, and makers such as LiveWire Group continue to report losses.

Service Networks and Charging Access

Many riders in apartments cannot charge at home, and service networks for electric drivetrains are thin outside major cities. Battery swapping solves part of the problem but needs heavy upfront investment and standard battery formats, which competing brands have been slow to agree on.

Growth Drivers

Low Running Costs for High-Mileage Riders

An electric scooter or motorcycle costs far less per kilometer to run than a petrol model, because electricity is cheaper than fuel and electric drivetrains need little maintenance. The saving is largest for delivery riders and motorcycle taxi drivers, who ride 100 kilometers or more a day. Delivery and commercial fleets grow at 10.90%, faster than personal mobility, and Spiro said in October 2025 that it holds more than half of Kenya's electric motorcycle market after building a network of battery swap stations. Radial Insights estimates that operating cost savings add about +2.6% of annual growth to the 7.85% CAGR, the largest single driver.

Government Rules and Incentives in India, China and Southeast Asia

India's PM E-DRIVE incentives, extended in March 2026 and again in August 2026, support price parity with petrol scooters. China's GB 17761-2024 safety standard, effective September 1, 2025, forced a replacement cycle of older electric bicycles. Vietnam's July 2025 directive on petrol motorbikes in central Hanoi pushed VinFast's electric scooter sales to a record in 2025. These rules affect three of the four largest two-wheeler markets in the world. We place the policy push at roughly 1.9 percentage points of yearly growth, strongest between 2025 and 2029.

Falling Battery Costs and New Chemistries

Lithium iron phosphate cell prices fell sharply between 2023 and 2025, and sodium-ion cells entered two-wheeler production in China in 2025, with Yadea among the first brands to launch them. Cheaper packs lower vehicle prices and allow longer range at the same price point. Battery makers including CATL have targeted the two-wheeler segment with standard swappable packs. This lifts the 1.5 kW to 4 kW and above 4 kW segments, which grow at 9.35% and 13.40%. We estimate falling battery costs contribute close to +1.5% of yearly expansion over the decade.

Opportunities

Battery Swapping for Fleets in Africa and Southeast Asia

Motorcycle taxis carry millions of passengers daily across Africa and Southeast Asia. Operators that build dense swap networks, as Spiro has done in Kenya, Uganda and Rwanda after raising USD 100 million in October 2025, can lock in riders through subscription plans and capture recurring revenue beyond the vehicle sale.

Tires Designed for Electric Two-Wheelers

Electric two-wheelers deliver instant torque and carry heavy battery packs, which increases tire wear. Indian tire makers such as CEAT and TVS Eurogrip have launched tire ranges marketed for electric scooters. Low rolling resistance compounds that extend range and higher load ratings for fleet bikes are a growing product opportunity alongside the vehicle market.

Asia Pacific Holds Over Four Fifths of Electric Two-Wheeler Revenue, While Africa Grows Fastest from a Small Base

Asia Pacific (APAC)

Asia Pacific (APAC) held an 86.50% share of the electric two-wheeler market in 2025. APAC revenue was USD 24.62 Billion in 2025 and reaches USD 50.74 Billion by 2035 at a 7.50% CAGR. In APAC, China's GB 17761-2024 standard took effect on September 1, 2025, and Yadea lifted 2025 revenue 31% to RMB 37.01 billion. India, the second-largest APAC market, registered about 1.4 million electric two-wheelers in FY2026, with penetration near 6.5%, and Vietnam is restricting petrol motorbikes in central Hanoi.

North America

North America accounted for 2.40% of electric two-wheeler revenue in 2025. North American revenue was USD 0.68 Billion in 2025 and is forecast at USD 1.60 Billion in 2035, an 8.90% CAGR. North American demand centers on throttle electric bicycles, which US federal law defines as low-speed electric bicycles with motors up to 750 watts and top speeds of 20 mph, and Canada caps power-assisted bicycles at 500 watts. Electric motorcycles from Zero Motorcycles and LiveWire Group remain a small North American niche.

Europe

Europe represented 6.80% of the global electric two-wheeler market in 2025. European revenue was USD 1.94 Billion in 2025 and rises to USD 4.64 Billion by 2035 at 9.15% a year. European electric mopeds are type-approved as L1e vehicles, limited to 45 km/h and 4 kW, which suits the urban scooter models sold by Niu Technologies, Segway-Ninebot and local brands. European shared-scooter fleets and delivery operators in cities such as Paris, Barcelona and Milan supply a large part of Europe's fleet demand.

Latin America

Latin America held a 2.10% share of 2025 electric two-wheeler revenue. Latin American revenue was USD 0.60 Billion in 2025 and reaches USD 1.64 Billion in 2035, a 10.60% CAGR. In Latin America, Colombia's Law 1964 of 2019 cut VAT on electric vehicles to 5% and exempts them from Bogota's pico y placa driving limits, which has made Colombia one of the region's leading electric motorcycle markets. Brazil and Mexico add Latin American demand from delivery riders working for apps such as iFood and Rappi.

Middle East

The Middle East took a 1.20% share of electric two-wheeler revenue in 2025. Middle East revenue was USD 0.34 Billion in 2025 and grows to USD 0.90 Billion by 2035 at a 10.20% CAGR. In the Middle East, Saudi Arabia targets 30% of vehicles in Riyadh being electric by 2030, and food delivery platforms in the UAE and Saudi Arabia are moving riders from petrol scooters to electric models. Turkey and Israel add Middle East demand for urban scooters.

Africa

Africa held a 1.00% share of the global electric two-wheeler market in 2025. African revenue was USD 0.28 Billion in 2025 and reaches USD 1.09 Billion in 2035, the fastest regional CAGR at 14.35%. In Africa, Spiro raised USD 100 million in October 2025, the largest electric mobility investment in Africa to date, and holds more than half of Kenya's electric motorcycle market. Motorcycle taxis in Kenya, Uganda and Rwanda are the core of African demand, and battery swapping removes the need for home charging.

Recent Developments

• In September 2026, India's electric two-wheeler registrations jumped 85% year on year, taking first-half FY2027 volume past 1 million units.

• In August 2026, India extended electric two-wheeler incentives under the PM E-DRIVE scheme and raised the program's total outlay.

• In March 2026, Yadea reported 2025 revenue of RMB 37.01 billion, up 31%, with profit attributable to shareholders up about 129%.

• In October 2025, Spiro raised USD 100 million to expand electric motorcycles and battery swapping across Africa.

• In September 2025, China's GB 17761-2024 safety standard for electric bicycles took effect nationwide.

• In May 2025, Ather Energy listed its shares on Indian stock exchanges after its initial public offering.

Chinese Volume Leaders Dominate Global Sales, While Indian Incumbents Overtake Start-Ups at Home

The electric two-wheeler market has two competitive centers. In China, a few large brands sell tens of millions of units each year at low prices. In India, established motorcycle makers now lead the electric scooter segment after a period when start-ups set the pace. Battery swapping specialists form a third group, strongest in Taiwan, Southeast Asia and Africa.

Chinese Volume Leaders

Yadea is the largest electric two-wheeler maker in the world by units, with plants in China, Vietnam and Indonesia, and it reported 2025 revenue of RMB 37.01 billion. Aima Technology and Tailg are its main domestic rivals in electric bicycles and scooters. Niu Technologies sells premium lithium-ion scooters in China and Europe, and Segway-Ninebot has expanded from kick scooters into electric mopeds and motorcycles.

Indian Incumbents and Start-Ups

TVS Motor Company, with the iQube, and Bajaj Auto, with the Chetak, lead Indian electric scooter sales in 2026. Ather Energy, listed in May 2025, is known for its connected scooters and fast-charging grid. Ola Electric built India's largest single scooter plant but lost share in 2025 and 2026 amid service complaints. Hero MotoCorp sells the Vida range, and Honda Motor Co. entered with the Activa e: and swappable batteries.

Swapping and Fleet Specialists

Gogoro runs one of the world's largest battery swapping networks in Taiwan and has expanded to other Asian markets. Spiro leads in Africa with motorcycles and swap stations across Kenya, Uganda, Rwanda and West Africa, backed by USD 100 million raised in October 2025. VinFast leads electric scooter sales in Vietnam and benefits from Hanoi's petrol bike restrictions.

Premium Electric Motorcycles

Zero Motorcycles and LiveWire Group sell high-performance electric motorcycles in North America and Europe. Volumes are small, but these brands set technology benchmarks for battery capacity and motor power that larger makers are adopting in their higher-power models.